Two Companies Claim They Have A Lease On The Same Property

My brother and I have mineral rights that our father gave us a little over three years ago. My dad had signed a Lease with Company A. Shortly after my dad gave the mineral rights to us Comapny B approached us and asked us to sign a Lease with them. They said the original Lease with my dad and recently expired (which it had) and that since Company A had no production from the property before the Lease expired we were free to lease the property to them...which we did.

Company A shortly after that started send us a small royalty check every few months claiming they had indeed produced from the property and the Lease that my dad signed was still in effect.

Anyone have any idea of how to clear this up?

Thanks.

Sounds as though A may have pooled your dad’s lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:

Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

Give me the operator/lease from your check stub and I’ll see what I can find in the way of a well/unit permit, etc.

David Mason said:

The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:
Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

Smackover Oil Treaters Ltd Henderson Unit

Rocky Arrell said:

Give me the operator/lease from your check stub and I'll see what I can find in the way of a well/unit permit, etc.

David Mason said:
The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:
Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

They may be listed as O’Ryan Oil and Gas. One other thing they have us in a unit with over 3000 acres. I thought a unit could not legally be that large.

David Mason said:

Smackover Oil Treaters Ltd Henderson Unit

Rocky Arrell said:
Give me the operator/lease from your check stub and I'll see what I can find in the way of a well/unit permit, etc.

David Mason said:
The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:
Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

Smackover Oil Treaters, Ltd. appears to be the crude purchaser, operator/owner is O’Ryan Oil & Gas (432) 550-2112 Att’n: Rex Barker P. O. Box 14821 Odessa, TX 79768. Henderson Unit was drilled by Marathon in April 2003, there are 3 oil wells and a SWD on the lease/unit and recent production has ranged from 18 Bopd reported April’10 to 70 bopd reported March’11. SOLUTION: Get a copy of your dad’s lease: go to the Henderson County courthouse and track title into/out of Marathon to O’Ryan and there should be note of a Unit Designation (also, run your dad’s name in the reverse index since 2002 for a Unit Designation, re: Marathon-Henderson Unit). It looks as though your second company may have been hasty in their conclusion of the lease being expired and non-producing. Marathon should have provided a solid transcript of title, can’t say for O’Ryan. Good Luck.

David Mason said:

Smackover Oil Treaters Ltd Henderson Unit

Rocky Arrell said:
Give me the operator/lease from your check stub and I'll see what I can find in the way of a well/unit permit, etc.

David Mason said:
The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:
Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.

THANKS.

Rocky Arrell said:

Smackover Oil Treaters, Ltd. appears to be the crude purchaser, operator/owner is O'Ryan Oil & Gas (432) 550-2112 Att'n: Rex Barker P. O. Box 14821 Odessa, TX 79768. Henderson Unit was drilled by Marathon in April 2003, there are 3 oil wells and a SWD on the lease/unit and recent production has ranged from 18 Bopd reported April'10 to 70 bopd reported March'11. SOLUTION: Get a copy of your dad's lease: go to the Henderson County courthouse and track title into/out of Marathon to O'Ryan and there should be note of a Unit Designation (also, run your dad's name in the reverse index since 2002 for a Unit Designation, re: Marathon-Henderson Unit). It looks as though your second company may have been hasty in their conclusion of the lease being expired and non-producing. Marathon should have provided a solid transcript of title, can't say for O'Ryan. Good Luck.

David Mason said:
Smackover Oil Treaters Ltd Henderson Unit

Rocky Arrell said:
Give me the operator/lease from your check stub and I'll see what I can find in the way of a well/unit permit, etc.

David Mason said:
The property is in Henderson County, Texas near Cedar Creek Lake.

Rocky Arrell said:
Sounds as though A may have pooled your dad's lease, thus sustained the lease HBP. Where is this property, on-line data may can be attainted to assist you.